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NY K85611





May 20, 2004

CLA-2-RR:NC:TA:349 K85611

CATEGORY: CLASSIFICATION

Ms. Nancy Hu
E & E Co., Ltd.
19410 Cabot Boulevard
Hayward, CA 94545

RE: Classification and country of origin determination for a sheet set; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(5); last country where an important assembly or manufacturing process occurred

Dear Ms. Hu:

This is in reply to your letter dated April 24, 2004, requesting a classification and country of origin determination for a sheet set which will be imported into the United States.

FACTS:

The subject merchandise consists of a bed sheet set. You submitted samples of a set that contains a flat sheet, fitted sheet and two pillowcases. The set is packed for retail sale in a clear vinyl bag. The fully elasticized fitted sheet will be made from either 52 percent cotton and 48 percent polyester woven fabric or 60 percent cotton and 40 percent polyester woven fabric. The fabrics are not printed and not napped. The flat sheet and pillowcases are made from two fabrics. The body of the flat sheet and pillowcases is made from the same fabric as the fitted sheet. The top hem or header will be made from a doubled piece of 100 percent polyester woven fabric. The header on the flat sheet and the headers on the pillowcases are 6 inches wide. You have indicated that by weight the pillowcases will be 22 percent polyester fabric and 78 percent cotton and polyester blended fabric. The flat sheet will be 9 percent polyester fabric and 91 percent cotton and polyester blended fabric. The set does not contain any embroidery, lace, braid, edging, trimming, piping or applique work. The manufacturing operations for the set are as follows:

CANADA:
-cotton and polyester fibers from the U.S. are spun into yarns. -blended yarns are woven into fabric.
-52/48 or 60/40 cotton and polyester fabric is shipped to China.

CHINA:
-polyester fabric is woven.
-fabrics are cut to size and shape.
-fabrics are sewn/hemmed/elasticized creating the pillowcases and sheets. -pillowcases and sheets are packed in sets and shipped.

ISSUE:

What are the classification and country of origin for the subject merchandise?

CLASSIFICATION:

Although referred to as a set, the sheet set does not meet the qualifications of “goods put up in sets for retail sale” as the components of the set are classifiable within the same subheading. Therefore, each item in the set will be classified separately.

The applicable subheading for the pillowcases will be 6302.31.9010, Harmonized Tariff Schedule of the United States Annotated, (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of cotton: other: not napped pillowcases other than bolster cases. The rate of duty will be 6.7 percent ad valorem.

The applicable subheading for the flat and fitted sheets will be 6302.31.9020, HTSUSA, which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of cotton: other: not napped sheets. The rate of duty will be 6.7 percent ad valorem.

The pillowcases fall within textile category designation 360 and the flat and fitted sheets fall within textile category designation 361. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.gov. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:"

Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section":

HTSUS Tariff shift and/or other requirements

6301-6306 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6301 through 6306 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric making process.

Subheading 6302.31 is not included in the paragraph (e)(2) exception to the above tariff shift rule. As the fabrics comprising the flat sheet and pillowcases are formed in more than one country, Section 102.21(c)(2) is inapplicable for those items. The fitted sheet is made from a single fabric. As the fabric comprising the fitted sheet was formed in a single country, that is, Canada, as per the terms of the tariff shift requirement, country of origin of the fitted sheet is conferred in Canada.

Section 102.21(c)(3) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the flat sheet and pillowcases are not knit and heading 6302, HTSUSA, is excepted from provision (ii), Section 102.21 (c)(3) is inapplicable for the flat sheet and pillowcases.

Section 102.21 (c)(4) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred". In the case of the subject merchandise, the most important manufacturing process occurs at the time of fabric making. Basing the country of origin determination on the fabric making process as opposed to the assembly process carries out the clear intent of Section 334 as expressed in Section 334(b)(2) and Part 102.21(c)(3)(ii). The fabrics that make up the flat sheet and pillowcases are sourced in more than one country. As no one fabric is more important than the other, a single country of origin determination cannot be made based on Section 102.21(c)(4).

Paragraph (c)(5) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred". Accordingly, in the case of the subject flat sheet and pillowcases, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, China.

HOLDING:

The country of origin of the fitted sheet is Canada. Products of Canada are not subject to quota or visa restrictions. The country of origin of the fitted sheet and pillowcases is China. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist John Hansen at 646-733-3043.

Sincerely,

Robert B. Swierupski
Director,

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